A Pvt. Ltd co. has factory in Non excisable Zone. It is enjoying excise duty holiday from last 5 years. Now, as 5 years are completed of tax holiday it will be liable to pay excise.
My Query is 1. Can the co. take excise duty credit on capital goods which were purchased in tax holiday period. 2. What will be the conditions to avail the credit on such goods.
Please share the Section/Rule if any for such situation.
30 November 2016
Yes, you can avail the 100 percent cenvat credit on capital goods purchase at the time of exemption period with payment of excise duty.
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